CorEnergy Infrastructure Trust announced it will sell its MoGas and Omega pipeline systems to Spire in an all-cash transaction valued at $175 million.
The MoGas System is an interstate natural gas transmission and distribution system providing service to markets in Missouri and Illinois.
CorEnergy owns and operates or leases regulated natural gas transmission and distribution lines and crude oil gathering, storage and transmission pipelines and associated rights-of-way. The REIT will use the net proceeds of the sale to repay its bank debt of $100 million.
“The sale of our MoGas and Omega systems enables us to significantly deleverage our balance sheet and strengthen our overall capital structure,” said Dave Schulte, chairman and CEO of CorEnergy. “This is one of several 2023 initiatives we are undertaking to improve our balance sheet and operating results, including proposed tariff increases and corporate cost reductions.”
The deal is expected to
